May 6, 2022 - Technology

Treasury sanctions cryptocurrency tool tied to North Korean hackers

Herb Scribner

The U.S. Treasury Department building in Washington, D.C. — The U.S. Treasury Department building. Photo: Joshua Roberts/Bloomberg via Getty Images

The U.S. Department of Treasury said Friday it sanctioned an online cryptocurrency tool that was tied to a North Korean hacking group and used to steal and launder virtual currencies.

Why it matters: This is the first time the treasury department has issued sanctions against a cryptocurrency mixer, which can be used for illicit activity.

Driving the news: A North Korean cyber unit called the Lazarus Group stole $620 million back in March and used the cryptocurrency tool Blender to launder more than $20 million of those stolen funds, the Treasury Department said.

The Treasury Department has now sanctioned Blender, or Blender.io, which is considered a "mixer" software.
Mixer software will mix transactions "together before transmitting them to their ultimate destinations," the department said.
These tools are "designed to anonymize the source of virtual currency by exchanging it for an equal amount of randomized currencies," per The Hill.

What they're saying: “Today, for the first time ever, Treasury is sanctioning a virtual currency mixer,” said Brian Nelson, the undersecretary of the Treasury for terrorism and financial intelligence, in a statement.

“Virtual currency mixers that assist illicit transactions pose a threat to U.S. national security interests.

"We are taking action against illicit financial activity by the DPRK and will not allow state-sponsored thievery and its money-laundering enablers to go unanswered."

The big picture: North Korea has been laundering more stolen cryptocurrency in recent weeks by using mixers, cybersecurity firm Chainalysis said, per Reuters.

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Treasury sanctions cryptocurrency tool tied to North Korean hackers

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